Defence Minister Rajnath Singh underscored the government’s commitment to fostering indigenization in the defence sector, with a focus on empowering MSMEs towards self-reliance. Speaking at the India Manufacturing Show 2023 in Bengaluru, Singh outlined measures taken to support MSMEs, including restrictions on importing 509 weapons and systems and the release of positive indigenization lists. With 75% of the defence capital acquisition budget reserved for purchases from local companies, Singh believes these steps will strengthen MSMEs and contribute to their self-reliance.
As part of the Innovations for Defence Excellence (iDEX) initiative, Singh highlighted the launch of iDEX Prime to expedite projects by startups requiring support up to Rs 10 crore. Emphasizing the importance of small-scale industries, Singh acknowledged their significant contribution to India’s economy, including employment generation and wealth dispersion.
The Defence Minister noted that many MSMEs are becoming integral parts of global supply chains, emphasizing the pivotal role they play in the country’s socio-economic development.
Impact on MSMEs, Businesses in the Region:
Rajnath Singh’s commitment to indigenization in the defence sector is poised to have a positive impact on MSMEs and businesses in the region. The government’s measures, such as the reservation of a significant portion of the defence budget for local purchases, will provide a boost to MSMEs, enhancing their self-reliance. This focus on indigenous growth is likely to create new opportunities for businesses in the defence sector, fostering innovation, collaboration, and economic development in the given location.